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Informist, Saturday, Apr. 25, 2026

By Reshma Ravi

MUMBAI - Tyre maker CEAT Ltd. is expected to report a substantial year-on-year rise in net profit for the March quarter, driven by strong growth in domestic volumes of automobile manufacturers and by replacement demand, according to brokerages. While domestic demand continues to underpin the company's performance, weak export demand and the current geopolitical uncertainties remain key risks.

CEAT is likely to post a net profit of INR 2.04 billion for the March quarter, according to an average of estimates from 11 brokerages, up over 48% on year but down more than 18% on quarter. The tyre manufacturer is expected to report net sales of INR 41.60 billion for the quarter, up nearly 22% on year and 5% sequentially.

The highest estimate for the net profit is INR 2.40 billion from Elara Securities (India) Pvt. Ltd. while the lowest estimate is INR 1.77 billion from ICICI Securities Ltd. The highest estimate for net sales is INR 43.35 billion from Motilal Oswal Financial Services Ltd. while the lowest is INR 38.44 billion from Nirmal Bang Equities Pvt. Ltd.

The brokerages expect the company's domestic sales volume to rise 16-17% on year with healthy double-digit growth across both the original equipment manufacturer and the replacement segments, ICICI Securities and Kotak Securities said. "Revenue growth YoY (year-on-year) to be driven by robust domestic OEM sales, along with addition of Camso's OHT business," Nuvama Wealth Management Ltd. also said. On Dec. 6, 2024, CEAT had acquired Camso's off-highway construction equipment tyres and tracks business from France's Michelin Group for $225 million. 

The R.P. Goenka Group company is expected to report earnings before interest, tax, depreciation, and amortisation of INR 5.51 billion, according to the average of estimates from 10 brokerages. The highest estimate for EBITDA is INR 5.92 billion from Motilal Oswal. Nirmal Bang has the lowest estimate of INR 4.90 billion.

Kotak Securities expects the company's margins to improve on a quarterly basis and has projected a rise of 10 basis points in the EBITDA margin for the March quarter. The brokerage said this rise will be driven by a superior product mix, particularly a higher contribution from the export segment, and continuing cost-control measures. However, ICICI Securities expects raw material inflation and higher freight costs to weigh on the EBITDA margin and lower it by 100 bps on quarter to 12.6%.

For the December quarter, CEAT had reported a net profit of INR 1.92 billion, up nearly 100% on year but down 5% from the trailing quarter. Its revenue from operations for the quarter was up over 20% on year and 7% on quarter at INR 39.57 billion.

All the eight brokerage reports on the company available with Informist have a "buy" recommendation on the stock with an average target price of INR 4,555 per share, up more than 31% from the current market price. Friday, the stock closed over 6% lower at INR 3,476.20 on the National Stock Exchange. The stock is down over 10% since the company announced its December quarter earnings Jan. 19. CEAT will detail its March quarter results Tuesday.

Following are the March quarter earnings estimates, in INR billion, for CEAT Ltd. from 11 brokerages in descending order of the net profit estimate: 

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US$1 = INR 94.25

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Rajeev Pai

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